IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC Inc. has demonstrated a strong revenue trajectory with a 9.4% year-over-year growth in digital revenue, boosted by a significant increase in performance marketing spend, which rose by 14%, indicating enhanced marketing efficiency. Notably, non-sessioned based revenue has emerged as the fastest growing stream for IAC, achieving a 16% increase year-over-year in the third quarter, which signals a robust diversification in revenue sources. Furthermore, the company is expected to see continued growth in its Consumer segment, particularly with Care.com projected to revert to positive year-over-year revenue growth in FY26, reflecting a positive operational outlook.

IAC's financial outlook appears unfavorable due to several factors, including a reduced revenue guidance of $330-$340 million, which falls short of the consensus expectation of $350.1 million, indicating potential challenges in meeting market expectations. The company's Care.com segment is projected to generate AEBITDA of $45-$50 million for FY25, a decrease from previous guidance, while the Search segment's forecast AEBITDA of $11-$13 million is also below consensus, reflecting a broader trend of declining revenues across multiple segments. Overall, IAC's mixed results, marked by significant year-over-year declines in several key revenue streams and increased corporate losses, suggest a troubled financial environment that could negatively impact investor sentiment.